RIO Rio Tinto Plc

By Rhiannon Hoyle

SYDNEY--Rio Tinto PLC (RIO.LN) said it may spend less on major projects next year than earlier projected, as the miner takes a strict approach to spending amid a commodity market downturn.

The Anglo-Australian resources giant said on Tuesday it now estimates capital expenditure of around US$5 billion in 2016, compared to an earlier forecast of less than US$6 billion.

"Our prudent capital allocation and disciplined approach to the balance sheet have reinforced our resilience during this period of ongoing volatility," Chief Executive Sam Walsh said in a statement.

Prices for commodities from iron ore to copper have fallen sharply due to ample supplies and slowing demand.

Rio Tinto, which will Tuesday hold an investor seminar for its aluminum business in London, meanwhile said it expects to reduce cash costs in that unit by roughly US$300 million by the end of this year, and by a similar level again in 2016. Further improvements to productivity at its mines should also aid a lift in output of bauxite, alumina and aluminum, it said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

December 08, 2015 00:56 ET (05:56 GMT)

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